Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Catahoula Re Pte. Ltd. (Series 2020-1)

The Artemis Catastrophe Bond and Insurance-linked Securities Deal Directory aims to provide a one-stop resource for information on every cat bond and ILS transaction we hold information on. The content of this Deal Directory is provided as is and there will be some omissions. Help us to keep these cat bond and ILS transaction summaries up to date by contacting us if you see an error or omission that you can correct.


Catahoula Re Pte. Ltd. (Series 2020-1) – At a glance:

  • Issuer: Catahoula Re Pte. Ltd.
  • Cedent / sponsor: Louisiana Citizens Property Insurance Corporation
  • Placement / structuring agent/s: GC Securities is sole structuring agent and bookrunner
  • Risk modelling / calculation agents etc: AIR Worldwide
  • Risks / perils covered: Louisiana named storm & severe thunderstorm
  • Size: $60m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: May 2020

Catahoula Re Pte. Ltd. (Series 2020-1) – Full details:

This is the sixth catastrophe bond issuance to be sponsored by Louisiana Citizens Property Insurance Corporation and the first under a new Singapore domiciled special purpose reinsurance vehicle named Catahoula Re Pte. Ltd.

With this new Catahoula Re Pte. Ltd. Series 2020-1 catastrophe bond transaction, Louisiana Citizens is seeking to expand the capital markets backed reinsurance coverage it has from the cat bond market, to add to still in-force protection from its last Pelican Re cat bond deal that was issued in 2018.

Catahoula Re Pte. Ltd. has been registered in Singapore as a special purpose reinsurance vehicle (SPRV), we’re told, as Louisiana Citizens shifts its normal domicile of choice to the country.

For 2020 Louisiana Citizens is looking to expand its capital markets backed reinsurance coverage for the catastrophe perils of Louisiana named storms (so tropical cyclones and hurricanes) as well as severe thunderstorms.

It’s the second transaction where LA Citizens has sought reinsurance coverage for the two perils and we’re told this new Catahoula Re cat bond will sit directly below the Pelican IV Re 2018 cat bond it the insurers reinsurance tower.

Catahoula Re Pte. Ltd. will seek to issue a single tranche of Series 2020-1 catastrophe bond notes that will be sold to investors and the proceeds used to fund and collateralise a reinsurance agreement to provide the coverage.

For now, the Series 2020-1 Class A notes are targeting just a $50 million issuance, although that could certainly grow if investor demand allows, we understand.

The notes will provide LA Citizens with per-occurrence and indemnity trigger based reinsurance cover for named storm and severe thunderstorm risks across a three-year term.

We’re told the notes will attach at $260 million of losses and exhaust at $360 million, so covering a $100 million layer and providing room to upsize if investor demand is sufficient to support it.

The notes will have an initial expected loss of 0.91% at the base case, we’re told, which translates to them being offered to cat bond investors with a coupon of 3% to 3.5%.

Update 1:

The Catahoula Re Pte. Ltd. Series 2020-1 catastrophe bond transaction, sponsored by Louisiana Citizens, has upsized by 20% to become an offering of $60 million of notes.

At the same time the pricing settled at the upper-end of guidance, to provide investors in the notes a coupon of 3.5%.

Update – November 2021:

The Catahoula Re Pte. Ltd. Series 2020-1 catastrophe bond is expected to be a total loss following hurricane Ida, as Louisiana Citizens anticipates making a full reinsurance recovery from it.

Update – May 2022:

The full recovery has yet to be made, but Louisiana Citizens has confirmed it is expected and the market still has these notes marked down for a total loss.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

« Go back to the Catastrophe Bond Deal Directory

Help us keep this valuable resource up to date. If you have information on a catastrophe bond or insurance-linked security deal we have not covered or can see something that we should change, please contact us to let us know.